The Bank of Canada denies that a weak economy is equivalent to a recession.

Canadian central bank officials deny the claims that the country's economy is in recession, while admitting that economic growth is sluggish and there is excess capacity in the labor market. The central bank stated that the current economic weakness and oversupply in the labor market do not exhibit typical signs of a recession - that is, a deep, widespread, and sustained decline in overall economic activity. Policymakers have decided to keep the policy rate unchanged at 2.25%, stating that they are in a dilemma: cutting interest rates to boost the economy may lead to a rise in oil prices and overall inflation; tightening rates to stabilize prices may further suppress growth.